Stock trading platform Robinhood announced a $200 million acquisition of Bitstamp, a global cryptocurrency exchange. This move aims to expand Robinhood’s crypto offerings and cater to institutional investors in the United States. The deal is expected to close in the first half of 2025, pending regulatory approval.
Robinhood’s decision to buy Bitstamp stems from a growing customer demand for more cryptocurrency products. “Everything we’ve been doing” said Johann Kerbrat, Robinhood Crypto’s general manager, “has been because our engagement from customers has been that they want more crypto products.”
Robinhood has been steadily building its crypto presence since introducing Bitcoin trading in 2018. The Bitstamp acquisition grants them access to institutional-grade offerings like lending, staking, and white-label solutions.
Kerbrat sees Bitstamp’s long history and regulatory licenses as a major advantage. “Bitstamp’s highly trusted and long-standing global exchange… has established one of the strongest reputations across retail and institutional crypto investors,” he remarked. Notably, Bitstamp will retain its branding after the acquisition.
This acquisition comes amidst potential legal troubles for Robinhood in the US. The Securities and Exchange Commission (SEC) issued a Wells notice to Robinhood in May, indicating a potential enforcement action regarding its crypto business. Despite Robinhood’s attempts to register with the SEC, the regulatory body expressed concerns about Robinhood’s crypto listings and custodial operations.
While the Wells notice doesn’t guarantee a lawsuit, it casts a shadow on the deal’s future. Robinhood has expressed its intent to cooperate with the SEC to avoid any violations. How this legal battle unfolds will likely impact the timeline and overall success of Robinhood’s crypto ambitions.
